Supply Chain Management

Case Studay Supply Chain Transformation at Dell

Article Details

Pub. Date	:March 2022
Product Name	: The IUP Journal of Supply Chain Management
Product Type	: Article
Product Code	: IJSCM020322
Author Name	: Nikhat Afshan
Availability	: YES
Subject/Domain	: Strategic
Download Format	: PDF Format
No. of Pages	: 16

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Abstract

The case presents the supply chain transformation strategy of Dell, which involved moving away from its legendry make-to-order model to make-to-stock model. It highlights why Dell decided to adopt make-to-stock model from which it had distanced itself for decades. Once known for several benefits such as no finished goods or parts inventory, flexibility, and negative cash-to-cash cycle, it started adding great complexity and cost. Dell decided to move to make-to-stock model while operating the make-to-order model for customers who value it, but at a much reduced level.

The Direct Model has been a revolution, but it is not a religion. We will continue to improve our business model, and go beyond it, to give our customers what they need. We will simplify our organization to make it easier to hear customers and respond to them.1

__ Michael Dell, Founder and CEO of Dell

'Customer requirements are increasingly being defined by how they (customers) use technology rather than where they use it. That's why we won't let ourselves be limited by geographic boundaries in solving their needs.' For me, this implies a continued need for worldclass excellence in global supply chain efficiency as well as maintaining Dell's former qualities for agility and responsiveness.2

__ Michael Dell, Founder and CEO of Dell

Introduction

In an interview to Dan Gilmore, Editor-in-Chief of Supply Chain Digest3 , on March 18, 2011,4 Annette Clayton, Vice-President, global operations and supply chain of Dell,

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